Africa has a well-developed uranium-mining industry owing to Namibia — currently the world’s third largest producer of the resource behind Kazakhstan and Canada. But Namibia is not the only African country with rich uranium reserves. Tanzania also shows great promise as an emerging uranium jurisdiction.
With its mining-friendly government, skilled and abundant labour and rich geology, Tanzania is emerging in the spotlight as miners and explorers ramp up their search for much-needed global uranium supply. With the uranium market experiencing exponential growth and a continuous upward pricing trend, investors looking to participate may benefit from understanding Tanzania’s unique uranium opportunity.
“Uranium has now slipped into a structural deficit and is about to get even tighter,” research firm Goehring & Rozencwajg wrote in a blog post. “Demand continues to grow, while production is beginning to disappoint.”
The global push for sustainable energy is a major driver for increased uranium demand. As more countries pursue carbon neutrality, nuclear energy is experiencing a massive resurgence as governments and energy companies increasingly recognize its role as a low-carbon, sustainable and high-power alternative to natural gas.
These reserves are not infinite, and long-term reliance on them is not sustainable. Even without the shortages from Kazatomprom and Cameco, there is a pressing need to ramp up global production.
Nearly all of these uranium-rich deposits are both underdeveloped and underexplored.
Tanzania’s proximity to multiple key markets will also prove beneficial for mining companies operating within the country, with easy access to Europe, China and North America.
Several uranium-mining and exploration companies have already staked a claim in Tanzania, with the most significant listed below.
Gladiator Resources owns multiple highly prospective uranium assets throughout Tanzania, with six exploration licences totaling 1,814 square kilometres. All of its assets are situated in areas that have experienced significant exploration attention and investment in the past. The company has even acquired multiple projects previously owned by Mantra Resources, the flagship being the 725 square kilometre Mkuju project which includes the SWC target and the Likuyu North and Mtonya uranium deposits.
The uranium market is experiencing considerable growth that is expected to continue in the coming years, well beyond the capacity of current production. Given supply issues from two of the largest uranium producers in the world, there is an immediate need to find an alternative source of uranium supply. Tanzania is incredibly promising in that regard, with rich reserves, a mining-friendly legislative climate and a well-established mining industry.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
Leave a Reply